PRESENTATION OF MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 28 – Consumer and Health Protection Bilateral screening: Chapter 28 PRESENTATION OF MONTENEGRO Brussels, 15-16 April 2013

PRICES INDICATION OF THE OFFERED PRODUCTS Chapter 28: Consumer and Health Protection PRICES INDICATION OF THE OFFERED PRODUCTS Nada Đurđić Coordinator in Market Inspection Administration for Inspection Affairs nada.djurdjic@ti.gov.me M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Chapter 28: CONSUMER AND HEALTH PROTECTION Contents Relevant acquis National legislation Compliance Institutional framework Administrative capacity Realized results Planned activities M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Chapter 28: CONSUMER AND HEALTH PROTECTION Relevantni Acquis Directive 96/6/EU highlight the prices of the offered products M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Chapter 28: CONSUMER AND HEALTH PROTECTION National Legislation The Law on consumer protection (Off. Gazette, No. 26/2007) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

One of the basic consumer rights under this law is: The right to choose freely – opportunity to choose from a range of products at competitive prices with an assurance of satisfactory quality; The right to choose freely – opportunity to choose from a range of products at competitive prices with an assurance of satisfactory quality; Chapter 28: Consumer and Health Protection One of the basic consumer rights under this law is:                  “The right to choose freely – opportunity to choose from a range of products at competitive prices with an assurance of satisfactory quality; (Artical 4 ,st.1, point.4) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Chapter Protection of consumer economic interests Price tags Chapter 28: Consumer and Health Protection Chapter Protection of consumer economic interests Price tags Article 13 of the Law prescribes: - Trader shall be obliged to notify the consumer about current price of the product which must be visibly indicated. - Current price shall be indicated on the goods or immediately adjacent to the goods, as well as on the goods in the display window. If the goods are of small size or inconvenient for indication of the price on each individual item, the price shall be indicated on the collective packaging. - When the goods are previously packed in a packaging that is different from the measuring unit next to the price for such packaging, the price according to the measuring unit for such product must be indicated on the packaging or immediately adjacent to the product. On bulk goods, the current price shall be indicated by unit of measure on the packaging or immediately adjacent to the packaging. Current price of a service shall be indicated at the place where the service is offered. Current prices shall be denominated in EUR. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Proper calculation of the price Chapter 28: Consumer and Health Protection Proper calculation of the price When selling products to the consumer, the trader must deliver: (Article 12):   Products at prices agreed by contract or at the prices formed in accordance with the prescribed criteria and properly calculated; M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Ban on Misleading Price Tags Chapter 28: Consumer and Health Protection Ban on Misleading Price Tags Price tags referred shall not be misleading for the consumer, nor shall they make an impression that (Article 14): the price is lower than it actually is; the price depends on facts or circumstances which in actuality do not influence the price; the price includes special services which are otherwise payable separately; the price was or will be increased or decreased for a particular period of time or by a particular amount; that the relationship between the price and usability of the offered and a comparable product is that which it actuality it is not. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Price reduction of the product Chapter 28: Consumer and Health Protection Price reduction of the product Price reduction of the product (for better consumer information) Article 75 a/ Reduction of price shall be deemed to be the sale of a product at the price that is lower than the one previously set, and it may be designated as a sale, action, seasonal discount, or with other similar name. b / The sale shall be the reduction of the price for a specific quantity of goods which shall subsist until all goods are sold. c / The product that is being offered at a reduced price must be: -visibly and distinctly designated at the place of offer; -with the attached price before the reduction and the reduced price.  d/ The goods that are offered at the reduced price must be physically separated from other goods, and if the period of use of such goods is close to expiry or if those are flawed goods, the reason for reduction must be indicated. e/ A product that was sold at a lower price for promotional reasons (action sale, etc.) may be a subject of the promotional sale again only after the expiry of the period that two times exceeds the duration of the previous promotional sale. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Administrative measures and offenses Chapter 28: Consumer and Health Protection Administrative measures and offenses a / In addition to administrative measures set out by law that regulates inspection supervision, the competent inspector shall impose an administrative measure to temporarily ban a trader or distributor from circulating particular products, if: - fails to notify the consumer about current prices in the prescribed manner, or - if the notification about the prices is misleading for the consumer b/ Offenses For merchants, the fine prescribed for the offense if: - fails to notify the consumer about current prices by indicating prices in the prescribed manner - if charging the consumer the price other than the agreed price or the price that is contrary to the prescribed criteria M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Non-compliance between Directive and the Law Chapter 28: Consumer and Health Protection Non-compliance between Directive and the Law No definition of sales price Does not contain a precise definition of cost per unit The definition of bulk goods is missing part "measured in the presence of the consumer." For definitions of missing trader "that the sale of goods should take place within the framework of commercial or professional activity and includes an offer for sale. Since the law does not contain a definition of sales price discrepancy arises in respect of: highlighting cost per unit, cost of goods in bulk. Not aligned in terms of: price expiration of advertisements, highlighting how the selling price and the price per unit, what matters is the relative cost per unit Since the substantive provisions of the Act in its predominant part of not complying with the directive, it is not part of the sanctions agreed. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Institutional Framework and Administrative Capacity Chapter 28: Consumer and Health Protection Institutional Framework and Administrative Capacity Supervision over the implementation of the Consumer Protection Act in the area of ​​cost management is done through the Inspection market inspection. Market Inspectorate has a total of 56 employees, as follows:         Market inspectors ......................................... 50          Counselors ...................................................... 3          Administration ................................................ 3 M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Administrative Capacities/2 Chapter 28: Consumer and Health Protection Administrative Capacities/2 By structure: Inspectors Lawyers Economists Engineer in Agriculture Engineer in Technology Engineer in Forestry 50 23 20 5 1 Administration Lawyers Economists Engineer in Agriculture Engineer in Technology High School Education 6 1 3 M O N T E N E G R O Negotiating Team for the Accession of the Montenegro to the European Union Poglavlje 25 Nauka i istraživanje

Chapter 28: CONSUMER AND HEALTH PROTECTION Achieved results 2012 2013 Ex officio Consumer complaints TOTAL Total of inspection controls 8211 256 7250 196 15913 Total of irregularities for prices 2974 38 2187 24 5223 a/irregularities for price tags 2571 32 1851 21 4475 b/irregularities for price reduction and sale 403 6 336 3 748 M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Acting on consumer complaints Chapter 28: Consumer and Health Protection Acting on consumer complaints Duty officer inspector Answering Machines by: Phone: 20/230-529 ,230-921 ,230-481 fax: 20 / 230-486 Web: www.ti.gov.me By submitting a written application Verbally - in the immediate arrival of the Market Inspectorate M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Chapter 28: CONSUMER AND HEALTH PROTECTION Planned activities Harmonization of national legislation with the EU legislation in the field of consumer protection The working version of the new Consumer Protection Act The working version of the Rules of emphasizing price per unit Administration for inspectoral affairs will continue through Market Inspection to carry out surveillance in this area in line with current legislation and EU good practice. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

Thank you for your attention. QUESTIONS